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By Stella Mapenzauswa and David Dolan
JOHANNESBURG (Reuters) - South Africa's government bonds reversed losses on Thursday and yields fell as investors drifted back into local debt to snap up bargains following a couple of days of heavy selling when risk aversion hit emerging markets.
Stocks closed up nearly 2 percent after European support for Greece eased concern about a euro zone debt crisis and prompted investors to buy back battered shares such as Lonmin.
Renewed demand for local debt cushioned the rand, which hit a session low of 7.4825 before clawing back ground, also taking its cue from the euro which was boosted by news of central bank measures to ease a funding squeeze for European banks.
The yield on the four-year bond fell as much as 29 basis points to 6.67 percent earlier on Thursday and was last at 6.81 percent, down 15 basis points compared with Wednesday's close.
The yield on the bond due in 2026 was down 12.5 basis points at 8.2 percent.
"I'd say bonds are benefit ting from a rotation out of U.S. Treasuries. We are seeing signs of a decent correction there," said Sean Mccalghan, a market analyst at ETM.
"Foreigners are getting back to emerging market assets. We've had two days of strong outflows in bonds and foreigners have been selling into weakness but we think that sell-off has played out."
The Top-40 index of blue chips rose 1.97 percent to 27,689.51, its third straight gain and its highest close since Sept 1. The All-share index gained 1.77 percent to 30,998.05.
Shares of asset manager and investment bank Investec rose 1.6 percent after it said it expects flat first-half profit, easing concern that it might post a lower profit, as it did for the full year.
During an overnight conference call between the leaders of Germany, France and Greece, the core euro zone leaders reiterated support for Athens. That helped steady the local market and send investors back to beaten shares, said Abri du Plessis, Chief Investment Officer at Gryphon Asset Management in Cape Town.
"It's all about sentiment at this point in time. As soon as sentiment calms down we see the markets bounce," he said.
"The large-caps, they were hit the hardest. The commodities, your more cyclical sectors, there's still a lot of scope (for buying)."
The rand earlier hit a session trough of 7.4825 against the dollar before recovering to 7.3770 by 1628 GMT, up 0.24 percent from Wednesday's close.
"It's all down to the euro really today, that's where the volatility is coming from today,. up to the euro really," RMB trader Jim Bryson said
Traders said the rand was also boosted by an article in Financial Mail in which Reserve Bank Governor Gill Marcus all but ruled out aggressive currency intervention to weaken the rand, saying there were no guarantees such steps would work.
Aggressive foreign reserves accumulation by the Bank earlier this year helped cap strength in the rand, which hit its strongest level this year of 6.5410/dollar in early May.
On the bourse, Johannesburg-listed shares of Lonmin, the world's third-largest platinum miner, surged 4.5 percent to 142.90 rand. As of Wednesday's close, Lonmin was the worst performer on the Top-40 index, having lost a third of its value.
Rival platinum miner Impala Platinum rose 2.7 percent to 169.33 rand. Implats is down 29 percent this year, as of Wednesday's close.
Miners are seen as "cyclical" stocks, or highly sensitive to the economic cycle. Fears about an economic downturn will often lead to selling of cyclical stocks.
Trade was brisk, with 269 million shares changing hands, according to the latest available data at 1603 GMT.
Advancers outnumbered decliners by a ratio of more than 2 to 1, with 71 shares unchanged.
Thu, 15 Sep 2011![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnewsimages%252F2011-09-15T154046Z_01_AJOE78E17K000_RTROPTP_3_OZABS-SHOPRITE-20110915.JPG "Zambians walk past a branch of South African chain Shoprite in the capital Lusaka") South Africa's Shoprite, the continent's biggest grocery retailer, acquired two supermarkets in Mauritius, it said on Thursday, as it increases its footprint in Africa. Full story ![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnewsimages%252F2011-09-15T133041Z_01_AJOE78E11J700_RTROPTP_3_OZABS-SAFRCIA-RAND-20110915.JPG "A CHILD HOLDS A FIFTY RAND NOTE.") South Africa's government bonds reversed losses on Thursday and yields fell as investors drifted back into local debt in search of bargains after a couple of days of heavy selling when risk aversion hit emerging markets. Full story |
 Nicolas Sarkozy and David Cameron landed in Libya to a heroes' welcome on Wednesday, promising help for the new rulers that French and British air power helped to install and being told the favour may be repaid in business contracts. Full story  An exit poll showed Denmark's Social Democrat-led opposition would win a majority of at least 90 seats in the 179-seat parliament on Thursday. Full story  Two crew members died after a cruise liner caught fire off Norway's coast on Thursday, police said, in a blaze that forced rescuers to evacuate more than 200 passengers. Full story |
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SA Business |
South African energy minister Dipuo Peters said on Thursday she had signed off on a proposal for new nuclear power plants. . . Full story |
Impala Platinum, the world's second-largest producer of the precious metal, was meeting South Africa's main mine union on Thursday in the. . . Full story |
South Africa's Top-40 index blue-chip stocks rose in early afternoon trade on Thursday as investors bought everything from real estate firm. . . Full story |
South Africa's rand weakened against the dollar on Thursday and looked set to hit a new year above 7.50 rand/dollar while. . . Full story | |||
Two November arrival capesize cargoes of standard South African coal were sold to China this week at $131.00 a tonne CIF,. . . Full story | South African logistics group Transnet plans to expand a rail line carrying manganese and designate a separate line leading to the. . . Full story | South African investment bank and asset manager Investec said on Thursday it expects flat first-half profit, hit by higher bad debts. . . Full story | There are no guarantees that strategies to weaken South Africa's rand would work and such options are limited now that the. . . Full story |
Brazil's proposal
to support the crisis-hit euro zone garnered only lukewarm
support from fellow BRICS countries on Wednesday, as doubts
mounted whether the five emerging market powers have the
political will or financial clout to throw a lifeline to
Europe.. . . Full story |
Company News |
Shareholders of GPI are referred to the announcements released by the company on SENS on 16 May 2011, in the press. . . Full story |
Shareholders are referred to the cautionary announcement issued on 25 May 2011, which was renewed on 7 July and 19 August. . . Full story |
Further to the announcement dated 9 September 2011, Implats confirms that the Zimbabwean Minister of Youth Development, Indigenisation and Empowerment (the. . . Full story |
Shareholders are hereby advised that the general meeting of Wesizwe shareholders was held today, 15 September 2011, at Glenhove Conference Centre,. . . Full story | |||
ELB is currently finalising its results for the year ended 30 June 2011, which should be released on SENS on or. . . Full story |
Shareholders were advised that the audited annual financial statements for the year ended 31 March 2011, posted on 15 September 2011. . . Full story |
Implats CEO David Brown said in an interview that "the threat of a licence cancellation is not there" regarding its operations. . . Full story |
Investec hosted an investor pre-close briefing at 9:00 (BST time) (10:00 South African time) on 15 September which focused on developments. . . Full story | ||||
Company Results | Revenue increased to R460.7 million (R369 million). Gross profit rose to R87 million (R77.7 million) and operating profit before interest improved. . . Full story | These are MMI's first final results following the merger of Momentum and Metropolitan and subsequent change in year-end. Net insurance premium. . . Full story | Revenue of the year came in at R1.755 billion, operating profit was R70.2 million, while profit before taxation from continuing operations. . . Full story | Revenue improved drastically to USD11.2 million (USD6.6 million) and operating profit doubled to USD1.1 million (USD525 000). Profit for the year. . . Full story |
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Click here for the Sharenet Spot Price page
| Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
|---|---|---|---|---|---|---|---|---|
| 15/09/2011 | 237 | 122 | 77 | 436 | 343,174,424 | R21,085,614,091 | 176303 | 2609149 |
| 14/09/2011 | 244 | 121 | 94 | 459 | 348,635,777 | R18,260,582,129 | 120520 | 2848419 |
| 13/09/2011 | 184 | 155 | 82 | 421 | 301,818,219 | R15,248,607,466 | 124540 | 3095911 |
| 12/09/2011 | 87 | 264 | 79 | 430 | 337,484,573 | R18,172,527,509 | 123265 | 2529889 |
| 09/09/2011 | 138 | 213 | 77 | 428 | 271,158,160 | R13,021,756,034 | 102094 | 2483214 |
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| Date | Time | Headline |
| 15/09/2011 | 17:02 | Tradehold Limited - Dealing in securities by a director |
| 15/09/2011 | 16:51 | FSRNNF - Nedbank Limited - Amendment Special Dividend Distribution Announcement |
| 15/09/2011 | 16:45 | FSRNNF - Nedbank Capital - Amendment - Dividend distribution announcement |
| 15/09/2011 | 16:25 | OML - Old Mutual Plc - Form 8.3 |
| 15/09/2011 | 16:18 | Grand Parade Investments Limited - Results of General Meeting of |
| 15/09/2011 | 16:15 | British American Tobacco p.l.c. - Notification of transactions of |
| 15/09/2011 | 15:40 | FFA/FFB - Fortress Income Fund Limited - Dealing in securities |
| 15/09/2011 | 15:39 | FSRNIH - Nedbank - Special dividend distribution announcement in relation to the |
| 15/09/2011 | 15:38 | FSRNIH - Nedbank Limited - Dividend distribution announcement in relation to the |
| 15/09/2011 | 15:37 | FSRNNF - Nedbank Limted - Special Dividend Distribution announcement in relation |
| 15/09/2011 | 15:36 | FSRNNF - Nedbank - Dividend distribution announcement in relation to the FSR |
| 15/09/2011 | 15:12 | Miranda Mineral Holdings Limited - Further cautionary announcement |
| 15/09/2011 | 15:00 | Bell Equipment Limited - Changes to commercial relationship with |
| 15/09/2011 | 14:51 | Illovo Sugar Limited - Appointment of Executive Director |
| 15/09/2011 | 14:00 | Impala Platinum Holdings Limited - Zimbabwean Indigenisation and |
| 15/09/2011 | 14:00 | Accentuate Limited - Trading statement |
| 15/09/2011 | 13:53 | Marshall Monteagle Plc - Dealing in securities by directors |
| 15/09/2011 | 13:04 | AH-VEST Limited - Renewal of cautionary announcement |
| 15/09/2011 | 13:02 | Wesizwe Platinum Limited - Results of the Wesizwe General Meeting |
| 15/09/2011 | 12:41 | INL/INP - Investec Limited/Investec plc - Form 8 (DD) |
| 15/09/2011 | 12:34 | INL/INP - Investec Limited/ Investec plc - Form 8 (DD) |
| 15/09/2011 | 12:29 | ELR/ELRP - ELB Group Limited - Trading Statement |
| 15/09/2011 | 12:08 | Exxaro Resources Limited - Trading of Exxaro ordinary shares on behalf of |
| 15/09/2011 | 12:06 | Super Group Limited - Dealing in securities by Super Group Share |
| 15/09/2011 | 11:54 | Omnia Holdings Limited - Dealing in securities |
| 15/09/2011 | 11:34 | William Tell Holdings Limited - Change to the board of directors |
| 15/09/2011 | 11:30 | Wescoal Holdings Limited - No change statement and notice of |
| 15/09/2011 | 11:22 | PC2A4 - Private Commercial Mortgages (Pty) Limited - Partial Capital Redemption |
| 15/09/2011 | 11:17 | Ububele Holdings Limited - Reviewed Provisional Financial Statements |
| 15/09/2011 | 11:05 | BD311A - Blue Diamond Investments No.3 (Pty) Ltd - Partial Capital Repayment |
| 15/09/2011 | 11:00 | African Eagle Resources plc - Appointment of a New CEO |
| 15/09/2011 | 10:14 | Metrofile Holdings Limited - Dealings in securities by directors |
| 15/09/2011 | 10:13 | Firestone Energy Limited - Notification Under Section 708A(5)(E) of the |
| 15/09/2011 | 09:50 | INL/INP - Investec Limited/Investec plc - Investec - pre-close briefing |
| 15/09/2011 | 09:36 | Ububele Holdings Limited - Renewal of cautionary announcement |
| 15/09/2011 | 09:30 | INL/INP - Investec Limited/ Investec plc - Disclosure in accordance with Rule |
| 15/09/2011 | 08:29 | Firestone Energy Limited - Negotiation of Significant Agreement |
| 15/09/2011 | 08:00 | Datatec Limited - Interim earnings up more than 33% and interim capital |
| 15/09/2011 | 08:00 | Central Rand Gold Limited - Completion of double void study |
| 15/09/2011 | 08:00 | Mvelaserve Limited - Reviewed condensed consolidated financial results |
| 15/09/2011 | 07:10 | British American Tobacco p.l.c - Transaction in own shares |
| 15/09/2011 | 07:10 | Anglo American plc - Treasury Shares - Transfers |
| 15/09/2011 | 07:05 | Total Client Services Limited - Disclosure of disposal of securities |
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